Rival forecasts showing a dire outcome for renters from the government's tax changes are being dismissed by Labor as the work of "vested interests".
Health Minister Mark Butler said it was hardly surprising the real estate lobby would defend the status quo after property industry groups released modelling claiming the impact of the tax package would be worse for rent prices and housing supply than Treasury forecasts.
The modelling, conducted by economic consultancies Qaive and Tulipwood and released jointly by the Real Estate Institute, Master Builders, and the Property Council, showed the budget would cause 8700 fewer new homes to be built over the next four years.
Rents would be $9 a week higher, Australia's economy would be $864 million smaller and there would be 3800 fewer construction jobs than would otherwise be the case, the analysis found.
